The LA Galaxy are on top of the list with an overall value of $315 million, thanks in large part to their lucrative broadcast and stadium naming rights deals. That represents a 19% increase over their value from the previous season. They generated a league high $63 million in revenue, which blows away the nearest competition, and a league high operating income on $9 million.

Seattle Sounders come in second place in each of those categories with a net worth of $295 million, $53 million in revenue, and a $6 million operating income.

Rounding out the top five franchises are Toronto FC ($280 million), New York City FC ($375 million), and Orlando City SC ($272 million).

MLS teams are worth an average of of $223 million, a 20% increase from last year. A new apparel deal with Adidas, increased television ratings and attendance figures are the primary driver for this increase, which is a big reason the drive for expansion is so strong. Twelve cities are vying to get in on this growing market. Despite this, Forbes believes the league is still failing to turn a profit.

Comments

This is exhibit A as to why MLS haters that think the league a ponzi scheme run on expansion fees are so far off. If you pay a $150M expansion fee for something that is instantly worth more than $200M, you are making what is by definition, a bargain purchase.

Assuming the cost of the stadium isn’t being pushed onto the tax payer than yes, that’s an additional cost, which would be reimbursed through the future revenues of the stadium. That’s how investments work. The cost of the stadium is offset by discounted future cash flows. An intro to finance class in any business school will show that this concept is cannon

Sounder fan here….but if Portland could 2x its stadium capacity (and still sell out each home game), it would likely lead the league in revenue. Broadcast rights would probably weigh against profitability, though greater capacity could mean a more lucrative stadium naming rights deal (though not enough to completely offset broadcast revenue)…

Will also be interesting to see the value of the Sounder’s new shirt sponsor deal…

Portland is increasing capacity by about 5K to roughly 26K. There is no reasonable way to add more. Part of what limits Portland’s ability to get more naming revenue is their small market size. Population of Portland Metro is what, maybe 1/3 that of Seattle?